Like most countries around the world, South Africa has felt the effect of the worldwide recession, and businesses large and small have been finding it increasingly difficult to make targets and achieve growth. This is particularly true in the retail sector, where high overheads and equipment costs, combined with sharply reduced consumer spending, have made retaining margins much harder.
When faced with these circumstances, many companies have focused on clever buying and an increased concentration on customer service to maintain sales or to show slight sales gains. However, the effects of these tough economic times are being felt throughout the value chain, and one company - Roan Systems - is focusing on effective partnerships with its customers to help them become more efficient and keep overhead costs down.
"Cash flow is always important, but tough economic times bring operational management and cash flow issues to the fore," says Frikkie Koegelenberg, Chief Commercial Officer at Roan Systems. "That's why we are trying to make doing business so much easier for our customers."
Roan Systems provides printers, mobile computers, multifunction devices, document archiving solutions, and RFID solutions to customers in all industries - solutions which are necessary to doing business but which are often at the bottom of the priority list. To reduce overhead commitments, many businesses are neglecting this vital element, creating long-term business impairment for short term cash flow gains.
"Reducing spend on these types of items may appear to improve the bottom line, but not when the outcome means insufficient resources for servicing clients in the future. Have you promised a level of service that you can't possibly deliver? Are you keeping too few printers to adequately complete the job?" Koegelenberg asks.
"In these times, one of the most significant advantages we enjoy is that we are close to our customers. We appreciate the pressures they are under and understand their needs. While we can't control everything that happens in business, we have a lot to say about how we react to what happens, and we have been providing advisory services and superior customer service for many years to help our customers as they look for ways to maintain revenue - whether in a down market or a growth market."
When times are tough, partnering is more important than ever, he adds. "The marketplace of the next 10 years is going to be dramatically different, and there needs to be an expansion of the dialogue among the customer and the manufacturer. Both have to be included for maximum impact, and that's where we come in."
Roan Systems offers outright purchase options with on-site support, as well as rentals and copy plans - all fully customisable to the customers' requirements. The customisation is key, allowing companies to access the solutions they need at price points that work for their bottom lines. "With this approach, we believe we are building a stronger industry," Koegelenberg says. "We have created extraordinary value. The tough economic climate is making companies more choice-conscious, as cost-cutting cuts into business operations. We have partnered with our customers through these difficult times to help them meet their goals."
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